Chennai: Air cargo agents dealing with Air India are in shock with the national carrier insisting on bank guarantee to carry on board cargo booked by them.
The fear is that other carriers may follow suit saddling agents who clear export and import cargo for consignees saddled with high costs.
Small time agents, mostly family run, dealing only with Air India will be forced to leave the business due to shortage of working capital or they will have to move to other carriers, say sources. If other carriers follow, it could mean ‘disaster for us,’ said an agent.
Air India has fixed the bank guarantee amount based on last six months’ productivity with an average of three fortnights’ productivity. The demand for bank guarantee follows payment default by an agent in south. The carrier wants bank guarantee from agents who have already provided one to International Air Transport Association (IATA) to ensure that in case of any default, it can be invoked by the carrier. “Providing two bank guarantees will be difficult when we are operating in wafer-thin margin,” said the agent.
14/01/16 TE Raja Simhan/Business Line
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The fear is that other carriers may follow suit saddling agents who clear export and import cargo for consignees saddled with high costs.
Small time agents, mostly family run, dealing only with Air India will be forced to leave the business due to shortage of working capital or they will have to move to other carriers, say sources. If other carriers follow, it could mean ‘disaster for us,’ said an agent.
Air India has fixed the bank guarantee amount based on last six months’ productivity with an average of three fortnights’ productivity. The demand for bank guarantee follows payment default by an agent in south. The carrier wants bank guarantee from agents who have already provided one to International Air Transport Association (IATA) to ensure that in case of any default, it can be invoked by the carrier. “Providing two bank guarantees will be difficult when we are operating in wafer-thin margin,” said the agent.
14/01/16 TE Raja Simhan/Business Line
